On August 6, Gallup released the poll results titled “Americans’ Confidence in the Economy Worsens in July.” The subtitle is “Gallup’s Economic Confidence Index registers -12, down from -8 in June.”
Notable excerpts include:
Americans’ confidence in the economy in July was the lowest it has been in any month since April. Gallup’s Economic Confidence Index slipped to -12 last month, down from -8 in June and -7 in May — with the May reading representing the most positive monthly average since Gallup began tracking economic confidence daily in 2008. Still, consumers’ confidence remains higher than the -16 reading in March — the lowest monthly score this year — which encompassed the public’s reaction to the automatic budget cuts that took effect as part of sequestration.
Gallup’s Economic Confidence Index is based on two components: Americans’ assessments of current economic conditions in the United States and their perceptions of whether the economy is getting better or worse. Most of the decline last month comes from a worsening economic outlook, although both index components dropped.
Americans’ net economic outlook fell six points to -9 in July, from -3 in June. The current score is based on 43% saying the economy is getting better and 52% saying it is getting worse. The net economic outlook component nearly entered positive territory in May, reaching -1.
Americans’ assessments of current economic conditions also declined last month, falling two points to -14 from -12 in June. The score reflects 20% rating current U.S. economic conditions as excellent or good and 34% saying they are poor.
Here is an accompanying chart of the two components of the Gallup Economic Confidence Index, discussed above:
The Special Note summarizes my overall thoughts about our economic situation
SPX at 1707.14 as this post is written